Parkland shareholder Simpson Oil takes stand against AGM decision

Parkland's shareholder dispute: The top shareholder of Parkland Corp, Simpson Oil, has vowed to explore measures to safeguard its interests after Parkland's decision to advance its annual meeting, limiting the shareholder's ability to nominate directors.

Simpson Oil, which holds approximately a 19.7 per cent stake in Parkland, had initially agreed to waive its rights to nominate new directors until March 31 but expressed concern when Parkland announced its AGM for March 28, earlier than its usual May schedule. 

Simpson Oil stressed its expectation of exercising shareholder rights without constraints at Parkland's 2024 AGM, referencing a previous waiver made in December.

Board nominee departure

The discord between Parkland, headquartered in Calgary, and its major shareholder escalated in December, coinciding with the sudden departure of Simpson's nominees from Parkland's board. 

This departure was followed by an agreement between Simpson and Parkland, preventing the oil company from making public statements against Parkland.

Parkland has not commented on this matter in response to a Reuters request. Additionally, Parkland faces pressure from activist investor Engine Capital, which cautioned against engaging in unnecessary litigation with shareholders and urged the appointment of independent board members. 

Asset divestment advocacy

Engine Capital had expressed concerns over the abrupt exits of Halley and Christiansen after serving as directors for eight months and had previously advocated for Parkland to divest assets.

Simpson Oil intends to assess its ability to exercise and protect its shareholder rights post the 2024 AGM and the termination of the nomination agreement. Parkland, valued at around $5.53 billion, is amongst Canada's leading fuel retailers.

(With Reuters Inputs)